Perdana Karya delays coal mining operation investment

Indonesian Stock Exchange-listed coal miner and contractor PT Perdana Karya Perkasa has decided to delay the company?s investments including the planned purchases of new heavy mining equipment due to the credit crunch resulting from the world financial meltdown, Investor Daily reported on Saturday.

The company?s finance director Soeroso said in Jakarta on Friday that a number of leasing companies which had earlier agreed to provide financing worth about Rp 310 billion had withdrawn their commitment due to liquidity problem.

According to him, leasing companies Komatsu Autofinance and Astra Sedaya Finance had earlier committed to providing Rp 110 billion and Rp 30 billion, respectively, while Astra Credit Companies and PT Orix Indonesia Finance earlier agreed to lend Rp 30 billion and Rp 40 billion, respectively.

Perdana Karya Perkasa aims to produce 1.1 million tons of coal this year.

The company?s corporate secretary Henry Chevalier said in December 2007 that the company would continue explorations in five concessions to increase production. The five concessions are Energi Mineral Kertanegara, Gerbang Mineral Kertanegara, Dallah, all in Kutai Kartanegara regency, East Kalimantan; Semoi project in Penajam Paser Utara regency, East Kalimatan; and Perdana Karya Perkasa in South Sumatra.

The company?s Teluk Dalam concession in Samarinda, East Kalimantan has been producing and is expected to produce around 360,000 tons of coal in next year, the company said in the report to Indonesia stock exchange in Dec 2007. (*)